Analysis of investment resources’ impact on food security condition

Food Security ◽

Foreign Investment ◽

Agricultural Production ◽

Direct Investment ◽

Agricultural Sector ◽

Negative Impact ◽

Positive Impact ◽

Security Mechanism ◽

Ensuring food security and developing agricultural production is impossible without investment. At the same time, some scientists note that a significant amount of foreign investment increases the dependence of the domestic economy and enterprises on foreign investors. In addition, subsidies lead to a lack of motivation among entrepreneurs to attract additional investment resources and increase the dependence of production on areas of state support. Some investment models contribute to the deterioration of the environment, and technological advances are not available to small farmers who do not have the financial resources to apply the technology. Therefore, investment is important to ensure the effective development of the agricultural sector and food security mechanism. However, the presence of a significant amount of foreign investment can lead to the dependence of the national economy on investors, which can have a negative impact on the cost of agricultural products, production volumes, exchange rates and purchasing power of the population. The aim of the article is to analyze the impact of investment on the agricultural production as the main component of food security mechanism. To analyze the effectiveness of investment we chose the indicators “Government spending on agriculture”, “Foreign direct investment in agriculture” and the indicator “Agricultural production”. As a result of the analysis, it was found that the impact of government investments on agricultural production is not significant. This trend can be explained by the existing theory that there is no significant positive impact of government investments on the efficiency of agricultural enterprises due to the lack of incentives for farmers to innovate and compete in the market environment. A strong direct link between the indicators “Foreign direct investment in agriculture” and “Agricultural production”, which indicates a significant impact of foreign direct investment on agricultural production, is emphasized.

The nexus between financial development and energy consumption: Estimating the role of foreign direct investment, economic growth and urbanization

Energy & Environment ◽

10.1177/0958305x211045375 ◽

2021 ◽

pp. 0958305X2110453

Author(s):

Jaleel Ahmed ◽

Shuja ur Rehman ◽

Zaid Zuhaira ◽

Shoaib Nisar

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Financial Development ◽

Latin American ◽

Direct Investment ◽

Negative Impact ◽

Positive Impact ◽

Supply And Demand ◽

This study examines the impact of financial development on energy consumption for a wide array of countries. The estimators used for financial development are foreign direct investment, economic growth and urbanization. The study employed a panel data regression on 136 countries with time frame of years 1990 to 2019. The model in this study deploys system GMM technique to estimate the model. The results show that financial development has a significant negative impact on energy consumption overall. Foreign direct investment and urbanization has significant impact on energy consumption. Also, economic growth positive impact on energy consumption its mean that economic growth promotes energy consumption. When dividing further the sample into different groups of regions such as Asian, European, African, North/Latin American and Caribbean countries then mixed results related to the nexus between financial development and energy consumption with respect to economic growth, urbanization and foreign direct investment. The policymakers in these different groups of countries must balance the relationship between energy supply and demand to achieving the sustainable economic development.

Does Foreign Direct Investment More Important Than Domestic Direct Investment for Export Structure? Evidence from Indonesia

10.21203/rs.3.rs-713874/v1 ◽

2021 ◽

Author(s):

Ariyo DP Irhamna ◽

Ely Nurhayati ◽

Adinda Putri Safira ◽

Galuh Indra Wijaya

Keyword(s):

Time Series ◽

Foreign Investment ◽

Direct Investment ◽

Negative Impact ◽

Positive Impact ◽

Domestic Investment ◽

Fdi Inflows ◽

Export Structure ◽

The Impact ◽

Export Product

Abstract Scholars have long studied the spillover of FDI on trade. However, there has been limited study which spesifically investigate the impact of FDI on the export structure in a developing country. Does FDI more important than domestic investment for export structure? To examine the question, we test the impact of FDI and DDI on the export structure in time series framework, utilizing data on FDI inflows to Indonesia and export data based on product stage over 1992–2017. The export structure is analyzed based on three categories, namely primary product, intermediate product, and final product. Our results show that domestic investment has a negative impact on the primary export product, while foreign investment has a positive impact on the final export product. The result highlights the importance of domestic and foreign investment in export upgrading.

Modeling the impact assessment of agricultural sector on economic development as a basis for the country’s investment potential

Investment Management and Financial Innovations ◽

10.21511/imfi.16(3).2019.21 ◽

2019 ◽

Vol 16 (3) ◽

pp. 229-240

Author(s):

Alina Bukhtiarova ◽

Arsen Hayriyan ◽

Victor Chentsov ◽

Sergii Sokol

Keyword(s):

Economic Growth ◽

Economic Development ◽

Direct Investment ◽

Agricultural Sector ◽

Negative Impact ◽

Manufacturing Sector ◽

Value Added ◽

The Cost ◽

In the context of countries integration into the world economic space, agricultural sector is one of the priorities and strategically important sectors of the national economy. Development of instruments aimed to increase investment potential of this sector is therefore an important component of the country’s economy growth. The article proposes a science-based model of the impact of the agricultural sector on the economic development level of countries trying to move towards European integration.It was found that the employment rate (+58.4) has the largest influence on the rate of GDP change in the studied group of countries (Ukraine, Moldova, Georgia, Armenia). The impact of the gross value added of the manufacturing sector on its economic growth is positive (+44.6). The negative foreign direct investment ratio in the model (–40.3) may be due to the fact that the indicator in the studied countries is still largely influenced by the intervention of the state mechanism, significant uncertainty and risk, which is a deterrent to the overall economic development. An important result of the study was that foreign direct investment had a negative impact on economic growth in developing countries. Further development of the investment potential of a country’s agricultural sector provides for a radical acceleration of scientific and technological progress and, on this basis, a reduction in the cost of a unit of agricultural products and food and an increase in their competitiveness in the domestic and world markets.

The Consequences of Foreign Direct Investments in Redefining Bilateral Trade Flow in Nigeria: A Gravity Panel Approach

Asian Economic and Financial Review ◽

10.18488/journal.aefr.2020.104.367.379 ◽

2020 ◽

Vol 10 (4) ◽

pp. 367-379

Author(s):

Saidu D Muhammad ◽

Kenneth O Diyoke ◽

Nnanna P Azu

Keyword(s):

Foreign Investment ◽

Direct Investment ◽

Bilateral Trade ◽

Negative Impact ◽

Import Substitution ◽

Trade Flow ◽

Foreign Direct Investments ◽

Bilateral Trade Flow ◽

Most of the Nigerian government’s transformation agenda is geared toward creating and enabling business environments to attract foreign direct investment. Opinions are divided as to the impact of foreign investment on trade and this researcher believed it could be either positive or negative. Hence, this research is to ascertain the magnitude of foreign investment’s impact on Nigeria’s bilateral trade. Integrating foreign direct investment in the gravity model, we applied the PPML technique because of its robustness and ability to recognise zero trade. We segregated foreign investment into three-flow, stock and its annual growth. Our estimation revealed that foreign direct investment stock impacts negatively on bilateral trade flow in Nigeria for both exports and imports and it is robust with the overall sample. Exporters’ foreign direct investment inflow was also revealed to have an impact on bilateral trade in Nigeria. But in all ramifications the magnitude of the negative impact is relatively small but statistically significant reflecting that trade and inward foreign investment are at least substitutes. Nigeria should further encourage inward foreign investment to further stimulate economic growth and aid in creating import substitution.

Reforming the IMF to Increase FDI Led Economic Growth: The Case of Latin American and Caribbean Countries

Management and Economics Research Journal ◽

10.18639/merj.2018.04.522256 ◽

2018 ◽

Vol 04 (S1) ◽

pp. 81

Author(s):

Ashraf Mahate ◽

Keyword(s):

Economic Growth ◽

Latin American ◽

Host Country ◽

Direct Investment ◽

Negative Impact ◽

Positive Impact ◽

The Impact ◽

Latin American And Caribbean ◽

The Imf

There is a strong body of literature that finds a direct connection between inward foreign direct investment and economic growth in the host country. At the same time, economic growth in the host country attracts additional Foreign Direct Investment (FDI). This bidirectional relationship can be supported by the IMF through its lending program to countries to assist in dealing with short-term shocks as well as managing more long-term structural issues. In fact, the IMF programs in theory should provide an indicator to potential investors that the country is committed to making a change and opening its economy, which are typical requirements under IMF conditions. IMF intervention should lead to a positive impact on inward FDI. This study examines the impact of IMF-support programs on inward FDI for a sample of Latin American and Caribbean Countries. The results from this study reveal that being on an IMF borrowing program has a negative impact on inward FDI in the second and third year. We argue that being on an IMF borrowing program does not provide inward FDI with the seal of approval that it requires in making an investment.

Contribution of Foreign Direct Investment in Nepal

Molung Educational Frontier ◽

10.3126/mef.v9i0.33587 ◽

2019 ◽

Vol 9 ◽

pp. 77-89

Author(s):

Khom Raj Kharel ◽

Suman Kharel

Keyword(s):

Technology Transfer ◽

Foreign Investment ◽

Direct Investment ◽

Significant Contribution ◽

Positive Impact ◽

Investment Environment ◽

The Government ◽

Macro Variables ◽

The purpose of this paper is to analyze the foreign direct investment status and environment in Nepal. There is significant contribution of foreign investment in economic development of developing countries like Nepal. Foreign investment attraction in a country like Nepal increases the foreign capital and technology transfer. Since 1990s inflow of foreign direct investment (FDI) has been increasing in Nepal due to the adoption of liberal economic policy by the government of Nepal. The Foreign Investment Technology Transfer Act (FITTA) has made better foreign investment environment in Nepal. This paper examines and analyses the contribution of FDI in Nepal. For the analysis, simple linear regression model has been applied to measure the impact of FDI on GDP and employment. Because FDI inflow has been recorded after 1990s, the impact of FDI has been analyzed in this paper over the period of 1990/91-2018/19. This study finds a positive impact of FDI on GDP and other macro variables.

IMPACT OF MACROECONOMIC FACTORS ON FOREIGN DIRECT INVESTMENT IN SELECTED SOUTHEASTERN EUROPEAN COUNTRIES

TEME ◽

10.22190/teme1804237a ◽

2019 ◽

pp. 1237 ◽

Cited By ~ 1

Author(s):

Jelena Andrašić ◽

Vera Mirović ◽

Branimir Kalaš

Keyword(s):

Direct Investment ◽

Negative Impact ◽

Positive Impact ◽

Fixed Effect Model ◽

European Countries ◽

Market Size ◽

Macroeconomic Factors ◽

Effect Model ◽

Foreign direct investment has a significant role in Southeastern European countries. The aim of the paper is reflected in assessing the character and nature of the relationship between macroeconomic factors and foreign direct investment in Southeastern European countries. Further, the subject of paper includes the examination of the impact of selected macroeconomic variables on foreign direct investment in six countries for the period from 2000 to 2012. The selected countries are Albania, Bosnia and Herzegovina, Bulgaria, Macedonia, Romania and Serbia. The research includes an examination impact of market size, national competitiveness and employment on foreign direct investment. By using the Hausman test, it was confirmed that the fixed effect model is an appropriate model in panel analysis. Based on the result, it determined the positive impact of market size, while the industry's share of GDP and employment have a negative impact on this variable. Also, the results confirmed that only the market size of the countries significantly affected on the flow of foreign direct investment in Southeastern European countries.

The Impact of Innovation Activities, Foreign Direct Investment on Improved Green Productivity: Evidence From Developing Countries

Frontiers in Environmental Science ◽

10.3389/fenvs.2021.635261 ◽

2021 ◽

Vol 9 ◽

Author(s):

Sa Xu ◽

Zejun Li

Keyword(s):

Developing Countries ◽

Direct Investment ◽

Negative Impact ◽

Positive Impact ◽

Productivity Index ◽

Innovation Activities ◽

Green Productivity ◽

Significant Negative Impact ◽

This paper from the perspective of productivity changes examines the impact of innovation activities and foreign direct investment (FDI) on improved green productivity (IGP) in developing countries. We divide the sample into two sub-groups; the BRICS and the other developing countries so as to account for underlying country heterogeneity. The analysis follows a panel data approach over the period 1991 to 2014, and used the global Malmquist-Luenberger productivity index to measure IGP. The results indicate that IGP in developing countries has declined. Innovation activities have a positive impact on IGP. FDI has a significant negative impact on IGP. Further study finds that there are threshold effects between FDI and IGP based on innovation activities, when the developing countries with a low-level of innovation, FDI has a negative impact on IGP; when the developing countries innovation activities above the threshold, innovation activities and FDI both can promote IGP.

PENGARUH FOREIGN DIRECT INVESTMENT DAN AFTA TERHADAP KESEMPATAN KERJA SEKTORAL DI ASEAN 5

JURNAL EKONOMI DAN KEBIJAKAN PEMBANGUNAN ◽

10.29244/jekp.4.2.140-152 ◽

2018 ◽

Vol 4 (2) ◽

pp. 140-152

Author(s):

Ilhamdi Ilhamdi ◽

Rina Oktaviani ◽

Yeti Lis Purnamadewi

Keyword(s):

Free Trade ◽

Direct Investment ◽

Free Trade Agreement ◽

Service Sector ◽

Negative Impact ◽

Positive Impact ◽

Trade Agreement ◽

Service Sectors ◽

This study aims to analyze the impact of Foreign Direct Investment (FDI) ‎and ‎ASEAN Free Trade Agreement (AFTA) on sectoral employment in ASEAN ‎‎5. The analysis ‎focused on five main sectors, namely agriculture, mining, ‎manufacturing, ‎construction and service sectors. This paper uses panel data ‎approach with Fixed Effect Model. Variable used include employment as an ‎edogenous variable, while GDP, wages and AFTA as exogenous variables. Cross section data that are used in this study consist of ASEAN 5 countries, ‎namely Indonesia, Malaysia, Philippines, Thailand and Vietnam with periods of ‎observation as much as 9 years, from 2006 until 2014.‎The result of this paper that FDI, GDP, wages and AFTA have different ‎impacts in each sector. FDI has positive impact on employment in service sector. ‎GDP has positive impact on employment in manufacturing, construction and ‎service sectors. While GDP in the agricultural and mining sectors has negative ‎impact on employment. The wage has a positive impact on employment in the ‎mining and agricultural sectors. ASEAN Free Trade Agreement (AFTA) that took ‎place in 2010 has a positive impact on employment in the manufacturing and ‎mining sectors.‎Foreign Direct Investment is one factor to overcome employment issues in ‎ASEAN 5, especially in service sector. While GDP becomes an important variable ‎in enhancing ASEAN 5 employment in the manufacturing, construction and ‎services. Increasing wages can be applied on agriculture and mining as it has a ‎positive impact on employment. AFTA that has taken place is proper policy for the ‎ASEAN 5 to encourage economic growth in the mining and manufacturing ‎sectors that have an impact on increasing demand of labor in the sector.‎

The Impact Of Monetary Policy Using Islamic Or Non-islamic Money Supply On Fdi In Jordan (1980-2018)

AZKA International Journal of Zakat & Social Finance ◽

10.51377/azjaf.vol2no2.61 ◽

2021 ◽

pp. 73-103

Author(s):

Adham Taher Mohmmad Alessa ◽

Hartini Mohammad

Keyword(s):

Monetary Policy ◽

Money Supply ◽

Direct Investment ◽

Negative Impact ◽

Positive Impact ◽

Statistical Tests ◽

Domestic Investment ◽

Study Results ◽

This study aimed to investigate the impact of monetary policy using Islamic or non-Islamic money supply on FDI in Jordan. Using time series analysis of selected variables during the period 1980 until 2018 using the ARDL model. The objective achieved the appropriate statistical tests such as data stability and co-integration tests have been used. The variables analyzed include the money supply (M2), the Islamic money supply (IMS), the export (EXP), Government Expenditure (GOV), inflation rate (INR), The gross domestic product (GDP) as independent variables. The dependant variable is the foreign direct investment (FDI). This study results in a long-term and short-term statistically significant correlation between the money supply (M2), the Islamic money supply (IMS) and FDI. The Islamic money supply (IMS) has a positive impact and the money supply (M2) has a negative impact on the FDI. The study recommended; the Jordanian government must implement a targeted Islamic monetary policy to attract foreign direct investment in the Jordanian economy. Provide an appropriate environment for investment and to remove the obstacles to investment in general, in order to attract the capital of Jordanians working abroad for domestic investment, as well as for foreign investments.